Dubai: Gulf Pharmaceutical Industries (Julphar) is focusing on Libya this year and could increase production capacity by 30 per cent as the humanitarian crisis resulting from the revolution raised demand for medicine, its chief financial controller told Gulf News.
The Ras Al Khaimah-based pharmaceutical company recorded 11.3 per cent growth in 2011 compared to 2010, exceeding Dh1 billion in sales revenue for the first time, Krishna Gopa announced yesterday.
Saudi Arabia recorded the biggest growth, contributing 40 per cent to the sales revenue, and Iraq was the fastest growing market with 20 per cent growth, Gopa added.
Julphar, which exports about 90 per cent of its products, relies on the Gulf and Middle East markets.
"There has been turbulence in the Middle East but the pharmaceutical industry was not really affected significantly because it is immune from these crises. Sometimes it brings us opportunities," Gopa said.
Julphar is focusing on Iraq and Libya as potential growth markets this year.
It is prepared to increase production capacity by 30 per cent to meet increasing demand by adding extra shift hours at its RAK-plant, Gopa said. "We are ready to meet any point of demand in 2012 with any opportunity that comes of regional crises," he said.
Government tenders
In Iraq, Julphar is entering the private market after winning some government tenders there, according to Gopa. "More people are consuming drugs and we are enhancing our marketing there," he said. Last year Julphar faced a drop in demand from Libya but recovered one-third of its sales there in December, Gopa said.
As part of its business plan to move to offshore production, Julphar is entering a joint venture to buy a factory in Addis Ababa, Ethiopia. "It will be finalised this week. At the end of June we could start production," he said. For the first quarter of 2012 Julphar is targeting sales revenue of Dh300 million, Gopa added.
"The financial results show good performance for a company which started its operations in 1980," he said.
Dr Ajay Kumar Sharma, head of the pharma practice in South Asia and the Middle East at Frost and Sullivan, said: "If compared with companies with in the GCC region, Julphar has performed as good as its nearest competitors such as Modern Pharma and Spimaco.
"However, if compared with industries across regions in India, Malaysia, etc, then Julphur has a lot to achieve."
Julphar exports to more than 40 markets in the GCC and Middle East. It is currently obtaining European registration for its human insulin plant.
Commercial production is expected to begin in the first quarter of this year with a production capacity of 1,500 kilogrammes, or 45 million insulin shots, according to Shaikh Faisal Bin Saqr Al Qasimi, Chairman of Julphar.
Growth expected
The Middle East pharmaceutical market is expected to register growth in 2012 as drug consumption increases with growing populations and penetration levels, Dr Sharma said.
"Health care has relatively been cut off from the economic slowdowns historically, in the emerging markets," he said.
"There may not be a double digit growth rate in the top line during a slowdown. However, maybe some positive gain. The impact is on the bottom line which can go sub zero during slowdowns."
